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‘We need more data’: Pelosi in no rush on next coronavirus stimulus deal

Speaker has not spoken with Treasury secretary Mnuchin since Tuesday about next coronavirus package

Griffin Connolly
Washington
Thursday 09 April 2020 20:34 BST
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White House coronavirus official says they're investigating when social distancing can be relaxed

Democrats are in no rush to furnish additional funds for the Treasury Department’s new small business paycheck protection programme (PPP), which received more than $350 billion from Congress last month.

“They still have two-thirds of it left. So we have time to negotiate how or when or where we need money there,” speaker Nancy Pelosi said of the initial funding for PPP, which has already lent out more than $100bn to help small companies deal with the coronavirus pandemic, roughly 30 percent of its initial allotment from Congress.

The last time Ms Pelosi spoke to Treasury secretary Steven Mnuchin, who has been the Trump administration’s lead negotiator on coronavirus response legislation, was Tuesday.

“No, I have not spoken to the secretary today,” the speaker said.

Ms Pelosi has acknowledged that Congress’ next bill responding to the health crisis will not include more wide-ranging Democratic priorities such as a sweeping infrastructure package. It may not immediately extend some provisions from the $2.2trn “CARES Act” that will provide direct cash payments of $1,200 to most American taxpayers. Negotiations for those Democratic wish-list items will come down the line.

“This is not CARES II. ... It’s about responding to the secretary’s request for a quarter of a trillion dollars” for small business payroll relief, Ms Pelosi said. “No, we need more data.”

Ms Pelosi, a Roman Catholic who often publicly references her faith, said she does not intend to spend Easter Sunday negotiating.

“I don’t have intention of spending any one second on Sunday trying to convince anybody that it’s necessary for us to address the needs of everyone in our society. If they don’t know that, if we don’t share that value, they’re not going to get it on Easter Sunday, Passover or Ramadan,” she said.

Ms Pelosi reaffirmed Democrats’ stance that any additional money to the small business lending programme must include a certain amount set aside for minority, women, military veteran, and tribal small business owners who don’t have as easy access to the traditional banking institutions that Treasury has channelled its loans through so far.

Of the proposed $250bn re-up for the small business lending programme, the speaker has asked Congress to set aside $60bn for “community development financial institutions” that facilitate capital to businesses in distressed and historically poor communities.

“There is a disparity in access to capital in our country. We do not want this tragedy of the coronavirus to exacerbate ... or ossify that disparity,” Ms Pelosi said.

Earlier on Thursday, Senate Democrats blocked a measure from Senate Majority leader Mitch McConnell that would have authorised the additional $250bn for PPP without the earmark for funds for the financial centres that help provide funding to businesses in poor communities.

Mr McConnell’s attempt to fast-track his bill through the Senate was a “political stunt,” Ms Pelosi said, echoing sentiments expressed by her Democratic colleagues on the Senate floor who objected to Mr McConnell’s request for quick passage.

“The bill that the Senate Majority leader brought to the floor would never pass the House by unanimous consent. It is a basis for some negotiation but it would never pass the House by unanimous consent,” Ms Pelosi said.

Republicans, meanwhile, have accused Democrats of stalling much-needed legislation to ensure American workers continue getting paychecks. The PPP is designed to forgive up to 100 percent of its loans to small businesses that meet certain payroll benchmarks.

“Washington liberals must stop playing this reckless game with the livelihoods of millions of families who are struggling,” House Minority whip Steve Scalise, Republican of Louisiana, said in a statement.

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